Model with Cross-Border Trade, Fixed Costs, Tariffs, and Firm Heterogeneity but No Foreign Affiliate Sales
Model with Cross-Border Trade, Fixed Costs, Tariffs, and Firm Heterogeneity but No Foreign Affiliate Sales
This variant includes monopolistically competitive firms with heterogeneous productivity and scale economies. The model can simulate the effects of changes in tariffs, fixed costs of production, and fixed costs of exporting on the volume of international trade and domestic shipments.
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Recommended Citations:
Riker, D. and Schreiber S. (2020). Structural Equations for PE Models in Group 2 (Imperfect Competition). U.S. International Trade Commission. Trade Policy PE Modeling Portal. |